ARM (NASDAQ:ARM) Shares Down 7.2% – Here’s What Happened

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 7.2% during trading on Monday . The stock traded as low as $401.95 and last traded at $407.72. 9,337,369 shares were traded during mid-day trading, an increase of 3% from the average daily volume of 9,037,244 shares. The stock had previously closed at $439.46.

Wall Street Analysts Forecast Growth

ARM has been the subject of several analyst reports. Barclays raised their price target on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. UBS Group increased their price objective on shares of ARM from $260.00 to $470.00 and gave the stock a “buy” rating in a research report on Wednesday. The Goldman Sachs Group lifted their target price on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. TD Cowen boosted their target price on shares of ARM from $165.00 to $265.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Finally, Guggenheim upped their price target on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $271.08.

ARM Stock Down 3.3%

The company has a 50 day simple moving average of $280.67 and a 200-day simple moving average of $179.01. The stock has a market capitalization of $378.40 billion, a price-to-earnings ratio of 424.94, a price-to-earnings-growth ratio of 14.81 and a beta of 3.77.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The firm had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In other ARM news, insider Richard Roy Grisenthwaite sold 24,339 shares of ARM stock in a transaction on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the sale, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. The trade was a 81.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the transaction, the insider owned 51,125 shares in the company, valued at $10,824,696.25. This represents a 50.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 256,191 shares of company stock valued at $59,026,200 over the last 90 days.

Institutional Trading of ARM

Several large investors have recently made changes to their positions in ARM. Syntax Research Inc. acquired a new position in ARM during the 1st quarter worth approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in ARM in the first quarter valued at approximately $30,000. FWL Investment Management LLC acquired a new stake in ARM in the second quarter valued at approximately $34,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of ARM during the first quarter valued at approximately $40,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of ARM during the fourth quarter valued at approximately $30,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.